Shares of Bharat Forge crashed heavily on Monday afternoon after the company posted its results for the quarter ended December. The stock had hit its all-time high earlier today.
What Happened: The PSU witnessed a 31% surge in net profit to reach ₹377.8 crore, primarily propelled by a favourable product mix and a steadfast focus on cost optimization. This marks a notable increase from the net profit of ₹289.1 crore reported in the corresponding quarter of the previous year.
The company’s revenue witnessed a growth of 16% reaching ₹2,263.3 crore in the quarter under review, compared to ₹1,952.1 crore in the same quarter last year. EBITDA for the quarter came in at ₹663 crore with a margin of 29.3%.
During the October-December period, the company secured new contracts worth ₹550 Crores across various sectors, including Automotive, Industrial, Defence, Aerospace, and Castings (Ferrous & Aluminum).
The company also announced an interim dividend of ₹2.50 per share. The record date for determining eligible shareholders for the interim dividend payout is fixed as February 23, with the dividend expected to be processed on or before March 12.
Get all the latest Share Market trends and news to set you up for the week ahead.
However, the stock is tanking as the company said that it sees growth momentum moderating in the quarter ending March 2024 and FY25. The company added that growth will moderate both in domestic and international markets.
Price Action: Bharat Forge’s share price was down 13.49% to trade at ₹1,136.75 in the late hours of trading on Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.